Niron Magnetics, a Minneapolis-based company developing high-performance magnets free of rare earth metals, announced Thursday it raised $21.3 million in funding.
The Volvo Cars Tech Fund and Warrenville, Ill.-based Volta Energy Technologies are joining existing investors Washington, D.C.-based Anzu Partners and the University of Minnesota.
Niron said in a statement it will use the funds to build its pilot production facility in Minnesota and speed up development of its proprietary Clean Earth Magnet technology.
“The demand for more sustainable vehicles, power generation and electronic devices should be met with innovation in the magnets that drive these technologies, rather than increasing the mining for rare earth materials,” Niron CEO Andy Blackburn said in the statement. “This new funding from investors like Volta Energy Technologies and Volvo Cars Tech Fund shows that there is strong global interest in making our unique Clean Earth Magnet technology widely available.”
The heightened demand for electric vehicles has increased global dependency on rare earth materials required for magnets that go into electric drivetrains and motors, according to the statement. Niron is leveraging iron and nitrogen to deliver better performance and lower costs, all while eliminating the need for rare earth content in magnets.
The first generation of Niron's magnets will be used across a variety of applications including audio speakers, magnetic sensors and industrial motors, according to the statement. While its second generation will address higher torque density applications and high operating temperatures such as vehicle drivetrains and wind turbines.
"Volta is excited to be invested in Niron Magnetics as the company introduces their rare-earth-free permanent magnets for use in electric motors. Such innovative technology is vitally important to enable the adoption of both electric vehicles and renewable energy from wind, without reliance on rare earth minerals," said Jeff Chamberlain, CEO of Volta Energy Technologies, in the statement. "Niron complements Volta's growing portfolio of technology companies that can improve the performance and reduce the cost of electric vehicles and renewable power."
